Debt Consolidation
Credit Counseling
Home Loan
Credit Card Debt
Bankruptcy
Debt free
 |
 |
The most common investment mistakes
From my own experience and from working with many others, I have heard about many others, I have heard about many so-called "good deals". Obviously, not all of these deals are good deals. But on the front end, they always seem to be. Good deals only become bad deals over time, and I have learned something: There will be as good a deal tomorrow as there is today.
Therefore, I never have to respond to the "good deal" that is presented to me today regardless of how good it is, because my experience has shown that I will have another regardless of how good it is, because my experience has shown that I will have another one tomorrow and another one the next day, and another one the next day, and another one the next day.
In evaluating investments, many fall into the "binary trap". The binary trap centers on the question, should I do this or not? It only gives me alternatives - yes or no - and if the deal is a good deal, I most certainly should say yes to it. However, to avoid the binary trap, ask the question, if this is a good deal, is it the best use of my avaiable funds? When I evaluate an investment this way, I immediately open up many more alternatives to investing than just one presented.
Unless there is a long-term investment strategy in place, you will always be subject to falling into the binary trap. The investment for any investor depends upon one's personal long-term goals and the strategy to accomplish those goals. Then any investment that comes along is selected as a means to meet the goals in light of the strategy, as opposed to assuming that every good investment is something that everyone should participate in.
Today's Bottom Line
There will be as good a deal tomorrow as there is today.
This article is adapted
from Master your money
